Japan jobless rate rises

The jobless rate hit a trough of 3.6 percent in July last year, which was the lowest since February 1998.

But it has since crept back up as companies have become more cautious about the business outlook amid a slowing US economy and high oil prices.

The jobless rate registered to 4.0 percent in September and October before

dropping to 3.8 percent in November and staying flat for three months.

Japanese corporate profits are being squeezed by record oil prices, higher raw-materials costs and the yen's 13 percent gain against the dollar this year.

Also on Friday new figures showed Japanese inflation rising to a 10-year high, with the core consumer price index, which excludes volatile fresh food prices, rising 1 per cent in February, the fifth straight month of gains.

Surging yen

Unemployed Japanese queue to find work at aTokyo job placement office [GALLO/GETTY]